Schrade Company bought a machine for $115,000 cash. The estimated useful life was four years, and the estimated residual value was $6,640. Assume that the estimated useful life in productive units is 129,000. Units actually produced were 52,000 in year 1 and 54,000 in year 2.

Indicate the effects of (a) acquiring the machine and (b) recording annual depreciation on the operating and investing activities sections of the statement of cash flows (indirect method) for year 1 (assume the straight-line method).

a	the machine acquisition would	(increase/decrease)	cash provided by	(operating/ investing)
	activities by the	(depreciation/purchase)	cost of	?
b	the depreciation cost would	(increase/decrease)	cash provided by	(operating/investing)
	activites by	?